Facebook reeling; Trade relief; China blocks Qualcomm

1. Facebook reeling: Shares in Facebook are set to plunge about 20% after the company said it expect...

Posted: Jul 26, 2018 11:48 AM

Updated: Jul 26, 2018 11:48 AM

Posted By: CNN Wire

1. Facebook reeling: Shares in Facebook are set to plunge about 20% after the company said it expects revenue growth to slow as it "puts privacy first" and rethinks its product experiences.

The sharp reaction follows an earnings report that showed slower than expected user growth and ad revenue. Sales hit $13.2 billion for the quarter, up 42% from the same period a year prior but below Wall Street estimates.

During a conference call with analysts, Facebook CFO David Wehner warned that sales growth may decline as the company offers users "more choice around privacy."

2. Trade relief: Shares in European automakers surged after President Donald Trump and European Commission President Jean-Claude Juncker said they would work toward eliminating tariffs and barriers on trade.

Trump had threatened a 25% tariff on cars made in Europe after his administration slapped tariffs on EU steel and aluminum imports. Juncker said both sides agreed to "hold off on other tariffs" while talks proceed.

Qualcomm had been waiting nearly two years for its purchase of Dutch chip maker NXP to clear global regulatory hurdles. The deal, first announced in October 2016, had been approved by regulators in eight other jurisdictions, including the European Union and South Korea. China was the lone holdout.

The final deadline for the agreement was midday Thursday in China -- and Beijing's Ministry of Commerce simply let the clock run out.

Qualcomm had warned investors that this would likely happen. CEO Steve Mollenkopf said Wednesday that if China failed to approve Qualcomm's deal with NXP, thecompany would walk away.

Asian markets ended the day with mixed results. Major markets in China declined.

Oil prices were volatile following reports that Saudi Arabia had suspended crude shipments through a Red Sea shipping lane after an attack on two oil tankers.

6. New kid on the block: A three-year-old Chinese startup will make its Nasdaq debut on Thursday.

Pinduoduo is set to raise around $1.5 billion in its initial public offering. The IPO values the Beijing startup at around $20 billion or higher.

It's an online shopping platform where people can get goods for cheaper when they recruit friends to buy the same item. There are also flash sales, as well as free gifts and coupons for getting friends to follow companies on social media. Think of the company as a mash up of Groupon, Gilt and eBay.